Perpetuals.com Ltd. (NASDAQ: PDC) has announced the backtest results for version two of its patent-pending BayesShield artificial intelligence engine, which powers its UpsideOnly paper trading platform. The company replayed approximately 1.07 billion historical order fills over a 375-day period using the same production code deployed on the live platform. The hypothetical non-compounded return was 380%, with a maximum drawdown of 27% and a return-to-drawdown ratio of 4.4. Starting with $400,000 in simulated capital, the strategy produced hypothetical profits of $1.522 million, ending the test period with $1.922 million.
According to Perpetuals, the AI model identifies consistently successful traders and generates automated trading signals when qualified users independently take similar positions at roughly the same time, rather than attempting to predict market prices directly. The backtest showed positive returns in every calendar quarter, avoided liquidations during the test period, and remained nearly flat during a sharp October 2025 Bitcoin sell-off. The company also noted that UpsideOnly, launched in May 2026, has grown to more than 225,000 users and recorded $70 billion in simulated notional trading volume across 25 assets. However, they cautioned that the live trading period remains too limited to draw conclusions about future performance.
The announcement highlights the potential of AI-driven trading strategies that leverage collective trader behavior. By focusing on replicating the positions of successful traders, BayesShield aims to reduce risk and improve returns without relying on direct market prediction. The backtest results are particularly notable given the turbulent market conditions, including the October 2025 sell-off, suggesting the strategy's resilience. The growth of UpsideOnly to over 225,000 users indicates strong market interest in AI-powered trading tools.
For investors, this development underscores the importance of AI in fintech and the potential for such technologies to disrupt traditional trading approaches. However, the company's caution about the limited live trading period serves as a reminder that backtested performance does not guarantee future results. As the platform continues to accumulate live trading data, the effectiveness of BayesShield will become clearer. The full press release is available at https://ibn.fm/uZs4s.
Perpetuals.com Ltd is a fintech company developing AI-powered trading products and prediction markets, with a global footprint across the United States, Europe, and Asia. Its proprietary trading platform, Kronos X, combines advanced AI and data analysis, trained on billions of trades, monitors market activity in real time, and provides multi-asset coverage with self-clearing blockchain-based settlement. The company's licensed European Multilateral Trading Facility (MTF) infrastructure and Kronos X platform operate with full MiFID II, MiCA, DORA, and EMIR compliance. More news and updates about PDC can be found in the company's newsroom at https://ibn.fm/PDC.
